How do I set up terms with the individual to get him a good return and still make a good return myself?    

Why are you setting up the LLC's?

Just looking for introduction and possibly set up with auto-emails.

well this is pretty standard for todays day and age syndicated multi family deal.I think the only issue maybe the refi is not as appealing in a few years with higher rates.. however as stated pretty common set up and common terms. 

You should be working on both sets of relationships concurrently... then whenever financing that property you get under contract comes up, you make a choice.

IN order to have a successful direct mail campaign, be clear on your investment objectives and based on this, you can target the right sellers with the right marketing piece.

Now that you've gone through this, have you set up any procedures prior to buying the property to avoid this?

If our rents were set so that the median house hold in that area could qualify, our rent would be $1180/month. 

The home is in a rural setting and is heated primarily with a wood stove in the basement and electric baseboard.

If you do not have other collateral, then you might set up a "Guidance Line" with the hard money lender.